This No-Frills Cash Back Card from American Express Pays Very, Very Well

It can be fun to read about reward travel bloggers galavanting around the globe in first class, using the points and miles they earn from their credit cards. But many of us just don’t have the means to spend a gazillion dollars on our credit cards to earn the millions of miles needed for some of these extravagant adventures. And if you also lack the time or even the interest to jet off to the other side of the globe, then maybe you would be happier earning valuable cash back through places where you spend most of your money. The new American Express Blue Cash Preferred card is the card for those people — the people who spend more time at the supermarket than they do dining on caviar in first class.

Why This American Express Card Is Valuable in Your Everyday Life

To kick things off with a bang, you can receive a $250 bonus after spending just $1,000 within three months of account opening, which is pretty doable for most. With the American Express Blue Cash Preferred Card, you also get a whopping 6% cash back at U.S. supermarkets, on up to $6,000 spent each year. And new for this card, you now earn 6% cash back on select U.S. streaming services including Apple Music, Amazon Music, ESPN+ and SiriusXM.

You also earn 3% cash back on gas and transit purchases including taxis, ride-share services, parking, tolls and public transit. And then you earn 1% cash back on everything else. Other perks include return protection, purchase protection and extended warranty coverage.

It does have a $95 annual fee and, unfortunately, American Express still imposes its 2.7% foreign transaction fee. But at the same time, this card also includes a valuable 12 months of 0% annual percentage rate financing on both new purchases and balance transfers, with a 3% balance transfer fee.

How the American Express Blue Cash Preferred Card Compares To Others

This American Express card is the leader when it comes to offering high rates of cash back, as it’s the only one that I know of that offers 6% cash back on entire categories of purchases. But it’s also a premium rewards card, with the $95 annual fee to prove it. Thankfully, your $250 sign-up bonus will offset more than your first two years’ worth of annual fees. But how does it stack up against competitors? Take a look.

The Capital One Savor Card

One of its big competitors is the Capital One Savor card, which is geared more toward people who eat out and spend a lot on entertainment events, rather than those who prefer to stay home, cook dinner and stream a movie. It offers you unlimited 4% cash back on dining and entertainment, but just 2% at grocery stores and 1% elsewhere. It currently features a $300 cash bonus after you spend $3,000 within three months of account opening. It also has a $95 annual fee, but it’s waived the first year.

The Uber Visa From Barclays

Likewise, the Uber Visa from Barclays also offers generous cash back for those who eat out and travel. It features 4% cash back on dining, including UberEats, plus 3% back on hotel and airfare, including vacation rentals. You also earn 2% back for online purchases and 1% on all other charges. It also includes a $50 credit toward streaming services when you use the card to spend $5,000 or more in a year. The sign-up bonus is $100 after spending $500 within 90 days, and unlike the American Express or Capital One cards mentioned, there’s no annual fee.

The Costco Anywhere Visa From Citi

Finally, fans of cash back should consider the Costco Anywhere Visa from Citi. This card features an amazing 4% cash back on up to $7,000 per year of eligible gas purchases, including those at Costco. That’s a great deal when you consider that many other cards offer bonus cash back at gas stations specifically exclude warehouse store fuel centers, like Costco, which often have the lowest gas prices around. This card also offers you 3% cash back on restaurant and travel purchases, 2% back at Costco stores and Costco.com and 1% back on all other purchases. There’s no annual fee for this card with your paid Costco membership.

Which One Is Right for You?

For many people, the Blue Cash Preferred is a pretty unbeatable cash-back card, especially if you see yourself spending $6,000 a year at the local supermarket — and you’re a big fan of media subscription services. But for those who spend more eating out and going to movies, concerts and sporting events, the Capital One Savor could be a better deal. The Uber Visa works well for those who refuse to pay an annual fee, while Costco fans who drive a lot might want to consider the Costco Anywhere Visa card.

No one will ever get too excited about a blogger earning cash back by visiting his or her local supermarket. But some of us would rather have a little extra money in our pocket, even if we aren’t basking in the glow of our online followers.

Editorial Note: This content is not provided by American Express. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone and have not been endorsed by American Express.

Editorial Note: This content is not provided or commissioned by the bank advertiser. Opinions expressed here are author’s alone, not those of the bank advertiser, and have not been reviewed, approved or otherwise endorsed by the bank advertiser. This site may be compensated through the bank advertiser Affiliate Program.

Advertiser Disclosure: Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). These offers do not represent all financial or credit offers available.